Employee pay/ productivity

Discussion in 'Business Operations' started by muldnerlm, Mar 21, 2005.

  1. muldnerlm

    muldnerlm LawnSite Member
    Posts: 5

    Anyone use a pay per job system? I am thinking about a set wage per job with a quality of work bonus. What if any experience do you guys have with this method. I bring this up because I have had productivity problems in the past.
     
  2. marko

    marko LawnSite Senior Member
    Posts: 963

    Cant help you as far as experience because I have not done it yet, but will be starting it this year. It seems to me to be the fairest for all concerned. Make sure your employees know re-do's because of a valid complaint are done 1st thing the next day and are not paid.
     
  3. muldnerlm

    muldnerlm LawnSite Member
    Posts: 5

    Thanks for the advice. Are you going to give them a flat rate for machine maintenance or are you saying that it is included?
     
  4. marko

    marko LawnSite Senior Member
    Posts: 963

    Per job pay is for driving to the site mowing, trimming, edging and driving back at the end of the day. Im just starting out so the maintenance is not much on 21" mowers and small 2,000 - 6,000 SF lawns.
     
  5. mastercare

    mastercare LawnSite Senior Member
    Posts: 289

    I think it's a good system, but has just as many drawbacks as hourly.

    If you told me (an employee) that I get paid no matter how long it takes, I'd probably skip out on quality a little bit. You said you wouldn't pay if complaints were made. what if 2 people are cutting a lawn and the complaint was about trimming? Now do you dock the trimming guy or both? If they were both trimming, and they both got paid less, only one is to blame. I would rather not have their pay based on speed and lack of complaints.

    What happens when one guy has a flat tire, and spends 20 mins fixing it. Does the other guy have to pick up his half of the work? Does this change who gets paid what? I see lots of problems with this...as far as who is responsible for what, and the fact that speed will overcome quality every time.

    I'd rather pay hourly....and set a time schedule....and don't tell the employees. Just figure out how long it should take, and give a small bonus if jobs are completed early. When they get their bonus and ask "what's this" just tell them that its a bonus for doing such quality work efficiently this week. This way, you reward them for good work, not just speed.

    Just my thoughts.
     
  6. marko

    marko LawnSite Senior Member
    Posts: 963

    I think the by the job is better because it will promote team unity. If a dead weight is on the team he will be run off by the others he is keeping back. If they miss some trimming, all 3 go and knock it out and continue on with the day. One of the team should be the foreman (or in charge) and be over looking the job when complete. Everyone misses trimming, but when two guys are in the truck waiting for you to finish yeterdays work, you will get the message pretty quick. If you do not, then it's the other two guys problem. You will get the most out of an employee paying like this because it puts him in control of his own pay.
     
  7. Broker

    Broker LawnSite Senior Member
    Posts: 382

    I changed over to it 2 years ago and have not looked back since. Fixed costs are easier to look at then variable.
     
  8. lawnlubber

    lawnlubber LawnSite Member
    Posts: 186

    Are you guys mow only businesses. How would you pay them for a cleanup for example or a mulch job? Also you still need to keep records of the hours employees work even if they are not paid per hr.
     
  9. CWilliams

    CWilliams LawnSite Member
    Posts: 60

    I'm so glad that you all are posting on this subject. I, too, would like to pay our employees a flat fee per job completed. How do you all plan to calculate the pay rate? This is our first year, so I don't know what size lawns we will end up with. Do you all pay a percentage of the rate or what?
     
  10. PTP

    PTP LawnSite Bronze Member
    from Tulsa
    Posts: 1,383

    I pay by the job. I have not had much problems with quality. I did have a little problem with it in the beginning but my guys were new at it and I could have very well have had the same problem regardless of the pay. Actually, I have had no quality complaints from customers and a couple have called and said that they thought that the quality was excellent.

    I pay this way for productivity reasons. The other day, my foreman said that he was looking forward to doing 200 lawns per week. I think that he might be a little too eager here but I like the attitude. payup I make it very clear that my goal is to make my guys more money.
     

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